Supply Chain Finance programs:
Supply Chain Finance programs (i.e. payables solution) are usually led either by global and/ or regional headquarters of most global multinational companies and/or large corporates. This approach ensures better control, the right structures and proper accounting treatment for their organisation. Over time, most corporates wants to extend the supply chain offering to other parts of their business so that the whole group can benefit from the concept.
While most consultants focus on customising the supply chain the solution to meet company’s requirements, however, one of the key component of any supply chain program is the ability to scale-up to maximise the benefit for the company. The responsibility of finding investors, at the right price point, is usually undertaken by the technology platform provider (i.e. banks or fintech) with oversight of the company.
Pinnacle Trade Finance specialises on distributions & syndication solutions and can offer independent and expert advice to global multinational and large corporates regarding different ways/ structures to scale-up these supply chain programs. If required, we also have the ability to find the right capital & liquidity partners among banks and institutional investors to optimise the company’s requirements.
2. Extension of supply chain program to local subsidiaries:
Once, the supply chain program has stabilised in their key global centres, global/ regional Treasurers usually put support cross-fertilisation and extension of their supply chain finance initiative to their subsidiaries in other countries as well. Supply chain funding for their subsidiaries might be in foreign currencies (i.e. USD, Euros, GBP, CHF, Yen, etc.) or local currencies (Turkish Lira, RMB, Indian Rupees, etc.) which are non-tradable internationally.
Pinnacle Trade Finance has global connectivity and can help with local bank tie-up or partnership, including funding options in foreign or local currency, so that the subsidiaries can avail the benefit of the supply chain program as well.